On the first day of the 2008 legislative session, Gov. Chris Gregoire announced a multifaceted climate change bill that could dramatically reshape the state's economy.

The legislation proposed Monday would lay the groundwork for concrete limits on greenhouse gas emissions beginning in 2012. It would give the state Department of Ecology the authority to regulate those emissions.

It would require big polluters to track their carbon dioxide releases beginning next year, with annual emissions reports starting in 2010.

And it would establish a clean jobs training fund that would start handing out money beginning next year to prepare the work force for employment in the renewable energy sector, biofuels production and other areas of green power.

"It is action. It is no longer just about goals," Gregoire told a news conference attended by major players in climate issues.

The announcement made clear that global warming would be a main focus during this election-year session. Limited to 60 days, it will be tough for lawmakers to shepherd controversial or costly laws through the convoluted legislative process.

Education, housing and transportation issues will also demand attention, as will modifications to the two-year budget that was passed last year.

Despite the time squeeze, Gregoire urged action on the global warming bill. "The future of our economy, the future of our great state is at stake," she said.

The legislation is being promoted by the state's environmental community as one of its top priorities.

Environmentalists' other top items are reworking land use rules to reduce sprawl and improve mass transit, conservation of urban forests and getting locally grown foods into the schools.

While environmentalists and Democratic leaders assembled a coalition of support for the global warming bill, there's concern from the business community and Republican representatives over the financial hit the economy might take and how the rules would work.

Which businesses will be required to track and report their emissions? What sort of escape clauses will be included should the costs of meeting carbon dioxide goals get so high that jobs are lost and electricity and food prices soar? Which industries will be crowned "green" and thus deserving of support?

"The governor has left a lot of important questions unanswered and House Republicans will take the time to answer them," said Rep. Doug Ericksen, R-Ferndale, in a prepared statement.

King County Executive Ron Sims and Seattle Mayor Greg Nickels joined Gregoire at Monday's media event held at McKinstry Co., a Seattle business lauded for its environmentally friendly approach to mechanical construction and engineering.

They echoed the need to make the state a leader in climate-friendly industries and to set a national example.

"I want to urge the Washington state Legislature to make this job No. 1," Nickels said. "We're going to drag this country kicking and screaming into the 21st century."

The legislation fits into a broader framework of climate change actions already under way.

Last year, the governor set a goal of reducing greenhouse gas emissions to 1990 levels by 2020. She appointed a Climate Advisory Team that last month released a report with 35 strategies for meeting those goals.

The state also is part of the Western Climate Initiative, an organization of seven states and two Canadian provinces that in August is expected to propose a regional cap-and-trade system to cut carbon dioxide levels. It will set a limit for greenhouse gas emissions for polluters, who can trade the right to pollute with each other depending on their ability to meet the cap.

The proposed legislation directs Ecology to complete its own cap-and-trade proposal by December. That will send a message to other states that Washington is serious about the cuts, and provide an alternative should the initiative fail to deliver, said supporters of the law. Lawmakers would vote on Ecology's proposed system next year.

Rep. Hans Dunshee, D-Snohomish, a sponsor of the legislation, expects a battle over the bill, but was cautiously hopeful it would pass.